How Johnson & Johnson has grown through new devices, partnerships and dividends: 4 takeaways

Spinal Tech

Market Realist took an in depth look at Johnson & Johnson as the company continues to grow through new medical device development, mergers and dividends. Here's what you should know, according to a Market Realist report.

1. Johnson & Johnson along with its several subsidiaries have launched a series of products throughout the last few years; those include:

 

  • Biosense Webster launched the ThermoCool SmartTouch catheter in 2016.
  • J&J acquired Calibra Medical in July 2012 to help it expand its diabetes business.
  • Calibra created a wearable insulin diabetes patch, which could become a serious alternative to injections. The patch has FDA approval, and is set to launch by the end of 2016 in select U.S. markets.
  • J&J will also launch an automated insulin delivery system. It's currently expected to start a trial by the end of 2016 with a launch scheduled for November 2017. Medtronic's MiniMed 670G, scheduled to launch April 2017, is a direct competitor.
  • Depuy Synthes trauma unit launched a hand locking system used for the treatment of fractures and deformities in July 2016.

 

2. Another driving force behind the company's success is through partnership and collaboration. The company has partnered with several others in the last few years including: Touch Surgery, a healthcare technology application, to help develop simulated surgical training software; it launched a cross-enterprise Diabetes Collaboration Zone in partnership with NACDS to create a team aimed at improving diabetes care with better solutions and services; and finally it developed the Geriatric Fracture Program to help hospitals provide value-based care to patients.

 

3. Johnson & Johnson announced an $0.80 dividend per share on July 18, payable Sept. 6. It's a 6.7 percent increase over the previous year's quarterly dividend payment.

 

Dividend payout has been a priority for the company for the last several years. It returns value to its shareholder through increasing dividends. The company has paid out dividends for more than 25 years.

 

4. Concerning valuation, Johnson & Johnson is trading at a forward price-to-earnings of 18x, but is trading lower than Medtronic, Abbott Laboratories and Royal Philips who are at 18.8x, 19.7x and 18.3x respectively.

 

It's stick hit $126.10, its 52-week high on July 20, 2016. It's low was $89.90 on Sept. 20, 2015.

 

Forty-four percent of analysts for 25 brokerage companies gave the stock a buy rating. 56 percent gave it a hold rating. While none of the analysts gave the company a sell rating.

 

More orthopedic and spine device news:
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